'final nail in coffin' for many in forest indu

'Final nail in coffin' for many in forest industry
BY RACHEL WILLIAMS BUSINESS REPORTER--Examiner
08 May, 2010 08:06 AM
FORESTRY contractors had been forced to sack half their staff in the past year, and another three weeks of shutdowns at Gunns' woodchip mills would be the final nail in the coffin for many businesses, the Tasmanian Forest Contractors Association said yesterday.
Gunns yesterday confirmed that its Tamar mill would close for three weeks from May 31; Triabunna would shut for two weeks from Monday; and Burnie would close for two weeks from May 31.


TFCA chairman Rodney Bishop said the closures would devastate an industry already battling with a quota of just 40 per cent.


"It is more than serious - they are wondering how they are going to survive," Mr Bishop said.


"I know people are finishing up on a particular coupe and are calling it quits because it's silliness to go into more debt to continue on the path we are going down."


He said the silviculture industry had been reduced from 700 jobs to 150 in the past year, while TFCA executive officer Ed Vincent said the 120 contracting companies around the state had halved their workforce from a combined total of about 800.


Mr Vincent will meet Industry Minister Bryan Green next week to discuss a "viable plan".
Mr Green and Premier David Bartlett met representatives of the forest industry on Thursday and he said the Government would continue to explore all avenues of assistance.


"Commercial negotiations with Asian woodchip customers are ongoing because securing further shipments is vital to the jobs of contractors," Mr Green said.


A 40,000-tonne shipment had recently left and a further two were expected "in the near future", Mr Green said.


Opposition industry spokesman Peter Gutwein said contractors were being ignored by the Labor-Green Government - "half of whom significantly contributed to the problem in the first place by poisoning our woodchip markets in Japan".


Mr Gutwein said Mr Green was oblivious to the problem.
"(He) didn't even know, when asked in Parliament earlier this week, that further shutdowns of Gunns woodchip mills are imminent," Mr Gutwein said.


"And where are the imaginary 800,000 tonnes of woodchip sales that his government promised prior to the election?"

Meanwhile, the Bank of America Corporation has become a major shareholder in Gunns Limited.


An Australian Securities Exchange release said that more than 40 million shares had been bought, giving it a voting power of 5.07 per cent.


Gunns' share price was slashed by almost 13 per cent this week, closing at 46 cents.